UAE, Saudi Arabia cut prices of October oil sales to Asia
Weekly crude oil exports from the Middle East were higher at 130 million barrels while North African exports were lower at 13.6 million barrels.
According to a Reuters report, Saudi Aramco have informed at least three North Asian refiners that full contractual volumes would be made available for the month of October.
The announcement follows the reduction in oil prices to Asia for the month. Saudi Arabia reduced the Official Selling Prices (OSP) for all crude oil grades to Asia in the range of $3-$4.50/barrel, with benchmark Arab Light crude oil being reduced by $3.95/barrel.
ADNOC announced the October Murban crude oil OSP at $98.06/barrel. The Murban OSP for the month of September was $105.96/barrel. Kuwait and Qatar also announced sharp cuts to the prices of benchmark grades.
Tepid demand from China
Chinese oil demand could come under pressure with the traditional festive season demand take off unlikely to occur this year with the stringent zero-Covid-19 norms dissuading people from travelling.
Local authorities in key provinces have forecasted road traffic to fall by up to 20% during the Mid-Autumn festival as compared to last year.
Weaker demand from China and inflation led demand reductions in other parts of the world, are key headwinds for the oil markets going into the last quarter.
Early forecasts suggest milder and warmer than average winter in Europe and if it materializes, could add further pressure on demand if heating requirement is lower.
Source: Reuters (Reporting by Sudharsan Sarathy; editing by Seban Scaria)